QDC1 Study Guide

8. Describe what is meant by "Sustainable Production Processes" and identify goals of such processes.

"Sustainable Production is the creation of goods and services using processes and systems that are: non-polluting; conserving of energy and natural resources; economically efficient; safe and healthful for workers, communities, and consumers; and, socially and creatively rewarding for all working people." Goals: "wastes and ecologically incompatible byproducts are reduced, eliminated or recycled on-site; chemical substances or physical agents and conditions that present hazards to human health or the environment are eliminated; energy and materials are conserved, and the forms of energy and materials used are most appropriate for the desired ends; and; work spaces are designed to minimize or eliminate chemical, ergonomic and physical hazard." To Achieve: business organizations must focus on a number of factors that include energy use and efficiency, CO2 (carbon footprint) and toxic emissions, waste generation, lighting, heating, cooling, ventilation, noise and vibration, and worker health and safety

11. List the four steps in the rational model of decision making.

(1) identifying the problem, (2) generating alternative solutions, (3) selecting a solution, and (4) implementing and evaluating the solution.

2. Which two charts are important in statistical process control (SPC)?

(SPC) Monitoring a Process to identify special variation and signaling the need for corrective action. Two charts important in SPC are 1) Control Chart: time order plot of sample statistics. Sampling taken and points need to fall between the control limits (both upper and lower) to be acceptable... any points that fall outside of the control limits indicates that the process is not stable. Mean control chart: Control chart used to monitor the central tendency of a process. Range control chart: Control chart used to monitor process dispersion.

4.Describe the uses of histograms.

A Histogram is a graphical representation of a distribution of observed values. A histogram allows the user to quickly identify and compare the values and to see if distribution is symmetrical, what the range of values are, and if a value is outstanding. A Histogram allows patterns to be seen more easily.

6. Describe the uses of control charts. How can this be used to determine if a process is acceptable or unacceptable?

A control chart can be used to track improvements of a process to a more stable level. As the charts peaks and valleys reduce and come back in closer to an acceptable control limits - the greater the intensity of the peaks and valleys the more unacceptable a process. Useful for identifying improvement opportunities and verifying that improvements really do have the desired effect.

14. Describe the practices employed by the International Organization for Standards (ISO).

A customer focus; Leadership; Involvement of people; A process approach; A system approach to management; Continual improvement; Use of a factual approach to decision making; Mutually beneficial supplier relationships. The Standards increase the levels of quality and reliability, productivity, and safety, while making products and services affordable. The standards help facilitate international trade. They provide governments with a base for health, safety, and environmental legislation. And they aid in transferring technology to developing countries.

3.Describe the uses of functional flowcharts.

A flowchart is a visual representation of a process. The flowchart is used to help identify possible points in a process whereby problems occur. Diamond Shapes represent the decision points in the process while rectangles reflect procedures. Arrows direct the flow of the process. Employees can better understand the process and how they fit in... helps to visualize the impact of changes and areas that may require improvement.

13. Compare the advantages and disadvantages of a "chase demand" strategy versus a "level capacity" strategy for meeting uneven demand.

A level capacity strategy, variations in demand are met by using some combination of inventories, overtime, part-time workers, subcontracting, and back orders while maintaining a steady rate of output. Matching capacity to demand implies a chase demand strategy; the planned output for any period would be equal to expected demand for that period.

6. Explain some of the issues to consider when developing an alternative layout appropriate for an organization's operations.

A list of departments or work centers to be arranged, their approximate dimensions, and the dimensions of the building or buildings that will house the departments; A projection of future work flows between the various work centers; The distance between locations and the cost per unit of distance to move loads between locations; The amount of money to be invested in the layout; A list of any special considerations (e.g., operations that must be close to each other or operations that must be separated); The location of key utilities, access and exit points, loading docks, and so on, in existing buildings. Key factors in developing layout include: initial costs in setting up the layout, expected operating costs, the amount of effective capacity created, the ease of modifying the system and relative positioning of the departments involved.

10. Describe the requirements for effective inventory management.

A system to keep track of the inventory on hand and on order; A reliable forecast of demand that includes an indication of possible forecast error; Knowledge of lead times and lead time variability; Reasonable estimates of inventory holding costs, ordering costs, and shortage costs; A classification system for inventory items. Further Explanation Inventory counting systems can be periodic or perpetual. Classification Systems = allocate control efforts according to the relative importance of various items in inventory (example: A-B-C approach Classifying inventory according to some measure of importance, and allocating control efforts accordingly.

2.Describe the purpose of aggregate planning.

Aggregate Planning is Intermediate-range capacity planning, usually covering 2 to 12 months. Create Planning Horizon... decide on the combination of output rates, employment levels and on hand inventory levels.

10. List some of the major decision-making styles.

Analytical, Conceptual, Directive and Behavioral. (Analytical : High Tolerance for Ambiguity and Task/Technical Oriented) (Conceptual: High Tolerance for Ambiguity and People/Social Concern Oriented) (Directive : Low Tolerance for Ambiguity and Task/Technical Oriented) (Behavioral : Low Tolerance for Ambiguity and People/Social Concern Oriented)

7. List some of the issues that influence the scheduling function.

Any hiring or firing restrictions imposed by HR, skill levels, limits on inventory such as available space, whether items are perishable, and whether there are some market lifetime (e.g., seasonal or obsolescence) considerations.

9. What are some of the costs associated with quality?

Appraisal costs - Costs of activities designed to ensure quality or uncover defects. Prevention cost - Costs of preventing defects from occurring. Failure costs - Costs caused by defective parts or products or by faulty services. (can be either Internal failures - Failures discovered during production or External failures discovered after delivery to the customer.

12. Describe methods for generating ideas and for identifying solution alternatives.

Consensus: Presenting opinions and gaining agreement to support a decision.Brainstorming (no judging - all ideas on the table then evaluated.) ; nominal group technique (NGT) - individuals silently generate ideas in writing. Each individual, in round-robin fashion, then offers one idea from his or her list. Ideas are recorded on a blackboard or flip chart; they are not discussed at this stage of the process. Once all ideas are elicited, the group discusses them. Delphi Technique - a group process that anonymously generates ideas or judgments from physically dispersed experts - using questionnaires or internet (not face to face like NGT)

1. List the seven categories of constraints that can limit the performance of a process or system.

Constraint : Something that limits the performance of a process or system in achieving its goals. Market: Insufficient demand; Resource: Too little of one or more resources (e.g., workers, equipment, and space); Material: Too little of one or more materials; Financial: Insufficient funds; Supplier: Unreliable, long lead time, substandard quality; Knowledge or competency: Needed knowledge or skills missing or incomplete; Policy: Laws or regulations interfere.

3. Describe the process types and when these would be used?

Describe the process types and when these would be used? five basic process types: job shop, batch, repetitive, continuous, and project. Job shop is small scale processing low volume of high variety. Requires intermittent processing by skilled workers on general purpose equipment. Examples would include vet office or shop producing one of kind tools. Batch: Processing of moderate volume and variety. Equipment not as flexible as job shop ... but still intermittent processing. Does not require as highly skilled workers as job shop. Examples: Bakery or Movies, Airlines or Plays (processing in batches) Repetitive (a/k/a assembly): Processing high volumes of standardized goods/services. Slightly flexible equipment and low skill level workers. Typically production lines/assembly lines. Example: carwash, ticket takers, automatic carwash, cafeteria. Continuous: High Volume non discrete highly standardized. No Equipment flexibility since not variety in output. Workers skills sets can be range of low to high. Examples. Petroleum Products, Sugar, Steel, internet service, electric supply. Project: unique, one-time operations designed to accomplish a set of objectives in a limited time frame. Example: Building a shopping center, putting on a play.

9. Describe the technology tools used for capacity planning.

Design capacity: The maximum output rate or service capacity an operation, process, or facility is designed for Effective capacity: Design capacity minus allowances such as personal time, and maintenance. These different measures of capacity are useful in defining two measures of system effectiveness: efficiency and utilization. Efficiency is the ratio of actual output to effective capacity. Capacity utilization is the ratio of actual output to design capacity.

6. Discuss and contrast the dimensions of the decision making styles.

Directive style have a low tolerance for ambiguity and are oriented toward task and technical concerns when making decisions. (directive style : people are efficient, logical, practical, and systematic in their approach to solving problems. People with this style are action oriented and decisive and like to focus on facts. In their pursuit of speed and results, however, these individuals tend to be autocratic, exercise power and control, and focus on the short run. ) Analytical : higher tolerance for ambiguity and is characterized by the tendency to overanalyze a situation. People with this style like to consider more information and alternatives than do directives. Analytic individuals are careful decision makers who take longer to make decisions but who also respond well to new or uncertain situations. They can often be autocratic. Conceptual: People with a conceptual style have a high tolerance for ambiguity and tend to focus on the people or social aspects of a work situation. They take a broad perspective to problem solving and like to consider many options and future possibilities. Conceptual types adopt a long-term perspective and rely on intuition and discussions with others to acquire information. willing to take risks and are good at finding creative solutions to problems. - negative conceptual can foster an idealistic and indecisive approach to decision making. Behavioral: most people oriented of the four styles. People with this style work well with others and enjoy social interactions in which opinions are openly exchanged. Behavioral types are supportive, receptive to suggestions, show warmth, and prefer verbal to written information. Have a tendency to avoid conflict and to be too concerned about others. They have adopt a wishywashy approach to decision making and to have a hard time saying no to others and to have difficulty making difficult decisions.

11. Explain the key concepts for determining how much inventory to order.

EOQ models answer the question of how much to order, but not the question of when to order. The latter is the function of models that identify the reorder point (ROP) in terms of a quantity: The reorder point occurs when the quantity on hand drops to a predetermined amount. That amount generally includes expected demand during lead time and perhaps an extra cushion of stock, which serves to reduce the probability of experiencing a stockout during lead time. Four Determinants on how much to order: The rate of demand (usually based on a forecast); The lead time; The extent of demand and/or lead time variability; The degree of stockout risk acceptable to management. (If demand and lead time were constant... ROP would be d X LT. But in reality this is not the case... the four determinants will impact these calculations. Another approach is fixed-order-interval (FOI) model is used when orders must be placed at fixed time intervals (weekly, twice a month, etc.): The timing of orders is set.

5.What are some of the problem solving skills that show competence through emotional intelligence?

Engagement, Empowerment and Motivation are required to effectively promote a problem solving environment.

3. Discuss how to achieve successful implementation in the IMPROVE stage of the DMAIC process of Six Sigma.

Expand the tool set early in deployment with methods to get more non-Belt participation and faster results. The key to avoiding confusion or overload is to integrate Lean, Innovation, and other improvement methods into the DMAIC framework. Engage senior leaders to go beyond the rubber-stamping of project selections to actually designing the project plan with the Belts. The benefits are a more realistic appraisal of project requirements and deeper understanding of where and how to apply other tool sets to drive bigger and faster results. Engage non-Belt managers and employees early on projects where there is existing motivation for change.

9. List some of the factors involved in choosing a supplier.

Flexibility, location, price, reputation, financial status, lead time, quality and quality assurance

7. List the three primary questions that bear on process selection.

How much variety in products or services will the system need to handle? What degree of equipment flexibility will be needed? What is the expected volume of output?

2. Describe the challenges associated with implementing a solution to a problem.

Lack of Executive sponsorship and commitment; lack of buyin, cooperation and ownership by frontline employees and managers

5. Describe strategies for developing aggregate plans that bridge strategic planning and short-range scheduling.

Level capacity strategy maintaining a steady rate of regular-time output while meeting variations in demand by a combination of options. Chase demand strategy Matching capacity to demand; the planned output for a period is set at the expected demand for that period.

17.Explain the Differences between ERP and MRP. ERP (Enterprise Resource Planning) :

MRP evolved into ERP... ERP expanded effort to integrate standardized record keeping that will permit information sharing among different areas of an organization in order to manage the system more effectively. information flows freely within various functions - purchasing, production, distribution, sales, human resources, finance, and accounting must work together to achieve the goals of the organization

7. Discuss some obstacles management faces when implementing quality and incorporating improvements into daily operations.

Management needs to ensure that the entire supply chain is committed to quality and that training and support are provided to all to ensure the understanding of quality programs and initiatives. Lack of a companywide definition of quality: Efforts aren't coordinated; Lack of a strategic plan for change; Lack of a customer focus; Poor intraorganizational communication; Lack of employee empowerment; View of quality as a "quick fix": Emphasis on short-term financial results: "Duct-tape" solutions; Inordinate presence of internal politics and "turf " issues: These can sap the energy; Lack of strong motivation; Lack of time to devote to quality initiatives: Don't add more work without adding additional resources.

7. Describe conditions that encourage creative thinking.

Managers are encouraged to establish corporate values that emphasize innovation, to establish innovation goals (e.g., develop five new patents), and to allocate rewards and resources to innovative activities. At a minimum, individuals need the time and space to reflect and think about whatever issues or problems need creative solutions : develop a "peer environment" in which people are more concerned about working for the greater good then their own personal success. The willingness to give and accept ongoing feedback in a nondefensive manner is another critical component of a culture dedicated to creativity. creativity can be enhanced by effectively managing the creativity process and by fostering a positive and supportive work environment.

14. Describe what an organization can do to avoid discouraging productive creativity and to provide a workplace environment that will help increase creativity.

Managers are encouraged to establish corporate values that emphasize innovation, to establish innovation goals (e.g., develop five new patents), and to allocate rewards and resources to innovative activities. At a minimum, individuals need the time and space to reflect and think about whatever issues or problems need creative solutions. Management should create a "safe" work environment that encourages risk taking, autonomy, collaboration, and trusting relationships among employees. develop a "peer environment" in which people are more concerned about working for the greater good then their own personal success. The willingness to give and accept ongoing feedback in a nondefensive manner is another critical component of a culture dedicated to creativity. creativity is a process that can be managed, and it is built around the philosophy of hiring and retaining great people to work in a positive and supportive work environment.

16. Explain the three major sources of information input into an MRP system.

Material requirements planning (MRP) A computer-based information system that translates master schedule requirements for end items into time-phased requirements for sub-assemblies, components, and raw materials. Three Major sources of information input are bill of materials, which tells the composition of a finished product; a master schedule, which tells how much finished product is desired and when; and an inventory records file, which tells how much inventory is on hand or on order.

18. Describe the responsibilities that rest with team members.

Members must understand their duties and know who is responsible for what issues and tasks. Members should speak with clarity, listen actively, and share information. Encourage members to use effective skills and practices to facilitate discussions and meeting; members should use data as the basis for decisions and learn to reach consensus on important issues members should have balanced participation. Everyone should participate, contribute their talents, and share commitment to the team's success. Members should established ground rules. Members exhibit sensitivity to nonverbal communication, understand group dynamics, and work on group process issues.

10. Describe qualitative and quantitative aspects associated with designing.

Methods analysis is as follows: Identify the operation to be studied, and gather all pertinent facts about tools, equipment, materials, and so on; For existing jobs, discuss the job with the operator and supervisor to get their input; Study and document the present method of an existing job using process charts. For new jobs, develop charts based on information about the activities involved; Analyze the job; Propose new methods; Install the new methods; Follow up implementation to assure that improvements have been achieved.

11. What is the costs of customer dissatisfaction?

Negative implications for customer perceptions and future business. Loss of Business, Liability. Damaged reputation, additional costs

8. Discuss two methodologies of process improvement. Deming Cycle and Six Sigma. Deming Cycle (Shewhart) - Improvement comes from the application of knowledge. What are we trying to accomplish? What change can we make that will result in improvement? How will we know change has created improvement?

PDSA (Plan, Do, Study, Act) Plan Stage consists of studying the current situation, gathering data, and planning for improvement. Do Stage is when the plan is implemented on a trial basis in a laboratory, pilot production process, or with a small group of customers. The Study stage is designed to determine whether the trial plan is working correctly and to see whether any further problems or opportunities can be found. The last stage, Act, is the implementation of the final plan to ensure that the improvements will be standardized and practiced continuously ... since the process never ends. Deming Cycle represents continuous improvement... improved standards serve as springboard for further improvements. Plan. Begin by studying the current process. Document that process. Then collect data on the process or problem. Next, analyze the data and develop a plan for improvement. Specify measures for evaluating the plan. Do. Implement the plan, on a small scale if possible. Document any changes made during this phase. Collect data systematically for evaluation Study. Evaluate the data collection during the do phase. Check how closely the results match the original goals of the plan phase. Act. If the results are successful, standardize the new method and communicate the new method to all people associated with the process. Implement training for the new method. If the results are unsuccessful, revise the plan and repeat the process or cease this project. Six Sigma uses a systematic improvement approach known as DMAIC—Define, Measure, Analyze, Improve, and Control. Defining the problem in operational terms and drilling down of the problem to a more specific problem statement. A good problem statement also should identify customers and the CTQs— critical to quality characteristics—that have the most impact on product or service performance, describe the current level of performance or the nature of errors or customer complaints, identify the relevant performance metrics, benchmark best performance standards, calculate the cost/ revenue implications of the project, and quantify the expected level of performance from a successful Six Sigma effort. Measure requires an understanding of the relationships between process performance and customer value. Then gathering facts—collecting good data, observation, and careful listening—must be defined and implemented. Must use data from existing processes and procedures and feedback from staff/management. Analyze - Vigorous analysis focusing on why defects, errors, or excessive variation occur. After variations identified statistical analysis . These experiments generally consist of formulating some hypothesis to investigate, collecting data, analyzing the data, and reaching a reasonable and statistically supportable conclusion. Statistical thinking and analysis plays a critical role in this phase. Improve. After understanding the root cause of the problem the team generates ideas to remove or resolve problem and improve performance measures and CTQ's. Includes some decision or scoring model is used to assess possible solutions against important criteria such as cost, time, quality improvement potential, resources required, effects on supervisors and workers, and barriers to implementation such as resistance to change or organizational culture. Control phase focuses on how to maintain the improvements, which includes putting tools in place to ensure that the key variables remain within the maximum acceptable ranges under the modified process. May include establishing new standards, controls that withstand time and workforce training. Six Sigma is a business improvement approach that seeks to find and eliminate causes of defects and errors in manufacturing and service processes by focusing on outputs that are critical to customers and a clear financial return for the organization.

13. List some of the decision-making biases and barriers to effective decision making or problem solving.

People make a variety of systematic mistakes when making decisions. These mistakes are generally associated with a host of biases that occur when we use judgmental heuristics. Judgmental heuristics represent rules of thumb or shortcuts that people use to reduce information-processing demands. eight biases that affect decision making: (1) availability, (2) representativeness, (3) confirmation, (4) anchoring, (5) overconfidence, (6) hindsight, (7) framing, and (8) escalation of commitment.

4. What are the 4 key steps which describe a logical, data-driven process for solving problems? What is important about the solution?

Plan. Begin by studying the current process. Document that process. Then collect data on the process or problem. Next, analyze the data and develop a plan for improvement. Specify measures for evaluating the plan. Do. Implement the plan, on a small scale if possible. Document any changes made during this phase. Collect data systematically for evaluation. Study. Evaluate the data collection during the do phase. Check how closely the results match the original goals of the plan phase. Act. If the results are successful, standardize the new method and communicate the new method to all people associated with the process. Implement training for the new method. If the results are unsuccessful, revise the plan and repeat the process or cease this project.

9. Describe the ways power, authority, responsibility, and accountability influence decision making.

Power and Authority are required for someone to make a decision. Decision makers who will be held responsible and/or accountable will usually apply more effort to the decisions that are made.

3. What is the expected output from aggregate planning?

Preparations for applying the plans to specific products and services - indicates the planned quantities and timing of specific outputs (Total Cost of Plan, Projected levels of inventory, output, employment, subcontracting, backordering.)

14. Describe the demand options and the supply options that can be applied to aggregate planning. Aggregate planning strategies can be described as proactive, reactive, or mixed.

Proactive strategies involve demand options: They attempt to alter demand so that it matches capacity. Reactive strategies involve capacity options: They attempt to alter capacity so that it matches demand. Mixed strategies involve an element of each of these approaches. Demand options include pricing (shift demand from peak periods to off-peak periods - with price differentials) promotions (Advertising and other forms of promotion, such as displays and direct marketing); using back orders (delaying order filling) shift demand to other periods by allowing back order , and creating new demand (create demand for off peak times... buses transporting for school trips during the day, landscapers/snow removal). Supply Options: Supply options include hiring/laying off workers, overtime/slack time, part-time or temporary workers, inventories use of finished-goods inventories allows firms to produce goods in one period and sell or ship them in another period, although this involves holding or carrying those goods as inventory), and subcontractors.

12. List some of the losses resulting from process variation.

Productivity loss, inventory loss, Time Loss, Equipment loss

15. Differentiate between inventory management and material requirements planning (MRP).

Raw materials, purchased parts, and other components of assembled items are subject to what is called dependent demand, which requires an approach different from the inventory management. MRP deals with dependent demand while Inventory Management previously discussed deals with independent demand.

8. Explain five recent trends in supply chain management.

Reevaluation of outsourcing. Companies are taking a second look at outsourcing - organizations are considering other costs and issues that come with outsourcing ie., , transportation, duty, loss of flexibility and long lead time; Risk management - businesses are stepping up risk assessment activities and implementing procedures to reduce risk - concern over liabilities and risk - ; Inventory management - Enhanced visibility, record keeping, tighter control, and strategic positioning of inventories are being emphasized - recognizing benefits of cross docking; Lean supply chains - utilizing lean systems to increase performance of the supply chain - eliminating non-value-added processes, improving product flow by using pull systems rather than push systems, using fewer suppliers and supplier certification programs, which can nearly eliminate the need for inspection of incoming goods, and adopting the lean attitude of never ceasing to improve the system. Sustainability. Environmental issues are not a primary concern at this point, although environmental groups may apply pressure in the near future as global warming and the carbon footprint of supply chains come into play.

10. What is the point at which costs associated with improvement are no longer warranted?

Return On Quality (ROQ) approach focuses on the economics of quality efforts. In this approach, quality improvement projects are viewed as investments, and, as such, they are evaluated like any other investment, using metrics related to return on investment (ROI)

16. Describe the five bases of power.

Reward power : Obtaining compliance with promised or actual rewards. Coercive power : Obtaining compliance through threatened or actual punishment. Legitimate power: Obtaining compliance through formal authority. Expert power : Obtaining compliance through one's knowledge or information. Referent power: Obtaining compliance through charisma or personal attraction i.e a role model referent power over those close to him.

1. List the types of graphical charts used in operations management.

Seven basic quality tools are flow chart, check sheets, histogram, pareto chart, scatter diagram, control chart and cause and effect diagram.

15.Compare and contrast personalized power and socialized power and the effect of each on decision making.

Socialized power is directed at helping others while personalized power directed at helping oneself.

1. Describe the basic steps in problem solving.

Step 1: Define the problem and establish an improvement goal Step 2: Develop performance measures and collect data Step 3: Analyze the problem Step 4: Generate potential solutions Step 5: Choose a solution Step 6: Implement the solution Step 7: Monitor the solution to see if it accomplishes the goal

4. Identify the variables that must be considered when developing the aggregate plan.

Supply and Demand

6.Describe approaches used to match supply and demand.

Supply options include hiring/laying off workers, overtime/slack time, part-time or temporary workers, inventories, and subcontractors. Demand options include pricing, promotions, using back orders (delaying order filling), and creating new demand.

8. Describe the uses, advantages/disadvantages, and criteria for team decision-making.

Team Decision Making effectiveness is dependent on following: Developing a clear understanding of the problem; group needs to determine the criteria used to select a solution; thoroughly and accurately assess both the positive and negative qualities of alternative solutions; encourage minority dissent and constructive conflict - group must embrace conflict rather than avoid it. Advantages: groups contain a greater pool of knowledge, provide more varied perspectives, create more comprehension of decisions, increase decision acceptance, and create a training ground for inexperienced employees. Disadvantages: Social Pressure (pressure to conform, stifle creativity), Domination by a local few, Logrolling (political wheeling and dealing replaces sound judgment), goal displacement (lose track of primary task of making a decision or solving a problem), Groupthink (sometimes the group let the unanimity override sound judgment).

1. Describe the factors that should be covered by a supplier audit.

The factors typically covered by a supplier audit are management style, quality assurance, materials management, the design process used, process improvement policies, and procedures for corrective action and follow-up.

4. List the steps for selecting a production site in a region?

The primary regional factors involve raw materials, markets, and labor considerations. Firms locate near or at the source of raw materials - Profit-oriented firms frequently locate near the markets they intend to serve while non. three primary reasons: necessity, perishability, and transportation costs profit organizations choose locations relative to the needs of the users of their services. three primary reasons: necessity, perishability, and transportation costs.

15. List the steps to receive quality certification through the International Organization for Standards (ISO).

The registration process includes document review by the registrar of the quality system documents or quality manual; preassessment, which identifies potential noncompliance in the quality system or in the documentation; assessment by a team of two or three auditors of the quality system and its documentation; and surveillance, or periodic reaudits to verify conformity with the practices and systems registered. Recertification is required every three years. Individual sites—not entire companies—must achieve registration individually. A key requirement for registration is that a company review, refine, and map functions such as process control, inspection, purchasing, training, packaging, and delivery.

2. List the key metrics and the main tools that are utilized when employing project management. Key Metrics:

Time, Cost, Performance Objectives. Tools: Work Breakdown Structure; Gantt Chart; Network Diagram, Risk Management.

13. Describe the role of the International Organization for Standards (ISO).

To standardize quality requirements for European countries within the common market and those wishing to do business with those countries, a specialized agency for standardization. The International Organization for Standardization (ISO) promotes worldwide standards for the improvement of quality, productivity, and operating efficiency through a series of standards and guidelines.

17. What are some of the appropriate goals of process improvement teams?

Typical goals of process improvement include increasing customer satisfaction, achieving higher quality, reducing waste, reducing cost, increasing productivity, and reducing processing time.

5. Describe the uses of run charts.

Used to track the value of variables over time. Helpful in identifying trends and patterns. Easily created and interpreted. Run chart example would be # of accidents identified for a number of time periods - marked with a line graph.

11. Describe the tools used in project management.

Work Breakdown Structure: A Motion study is the systematic study of the human motions used to perform an operation. The purpose is to eliminate unnecessary motions and to identify the best sequence of motions for maximum efficiency. hierarchical listing of what must be done during a project) Initial Planning Tool that is needed to develop a list of activities , activity sequences and a realistic budget; Network Diagram - Diagram of project activities that shows sequential relationships by use of arrows and nodes. (main features of PERT and related techniques is their use of a network or precedence diagram to depict major project activities and their sequential relationships. There are two slightly different conventions for constructing these network diagrams. Under one convention, the arrows designate activities; under the other convention, the nodes designate activities. These conventions are referred to as activity-on-arrow (AOA) and activity-on-node (AON)) A Big Picture visual aid that is used to estimate project duration, identify activities that are criteria for timely project completion, identify areas where slack time exists and develop activity schedules; Gantt Charts - A visual aid used to plan and monitor individual activities; Risk Management - Analyses of potential failures or problems assessment of their likelihood and consequences and contingency plans. Good risk management entails identifying as many potential risks as possible, analyzing and assessing those risks, working to minimize the probability of their occurrence, and establishing contingency plans (and funds) for dealing with any that do occur.

16. List the key elements of total quality management (TQM).

never-ending push to improve, which is referred to as continuous improvement; the second is the involvement of everyone in the organization; and the third is a goal of customer satisfaction, which means meeting or exceeding customer expectations. Competitive Benchmarking, Employee Empowerment, Team Approach, Decisions based on facts not opinions, knowledge of tools, Supplier of Quality, Champion, Quality at the Source and Suppliers are partners. Steps for TQM: Focus on processes, make everyone in the organization a "quality manager. Put external customers first, Recognize Internal Customers, Team Based Organization, Reduce Heirarchy, Use Leadership Teams, Agile Corporation, redesign work systems.

5. List some of the tools that are used for evaluating potential locations.

techniques that are helpful in evaluating location alternatives: locational cost-profit-volume analysis, factor rating, and the center of gravity method. Locational cost profit-volume analysis Technique for evaluating location choices in economic terms.-Determine the fixed and variable costs associated with each location alternative. Plot the total-cost lines for all location alternatives on the same graph. Determine which location will have the lowest total cost for the expected level of output. Alternatively, determine which location will have the highest profit. Factor Rating: General approach to evaluating locations that includes quantitative and qualitative inputs. The value of factor rating is that it provides a rational basis for evaluation and facilitates comparison among alternatives by establishing a composite value for each alternative that summarizes all related factors. Decision makers incorporate their personal opinions and quantitative information in the decision process. Center of Gravity Method: Method for locating a distribution center that minimizes distribution cost. Includes the use of a map that shows the locations of destinations. If the quantities to be shipped to every location are equal, you can obtain the coordinates of the center of gravity (i.e., the location of the distribution center) by finding the average of the x coordinates and the average of the y coordinates

12.What is the Economic Order Quantity (EOQ) model?

used to identify a fixed order size that will minimize the sum of the annual costs of holding inventory and ordering inventory. EOQ models identify the optimal order quantity by minimizing the sum of certain annual costs that vary with order size. Economic order quantity (EOQ) The order size that minimizes total annual cost. Three types of EOQ Models: The basic economic order quantity model (simplest of the three models. It is used to identify a fixed order size that will minimize the sum of the annual costs of holding inventory and ordering inventory - orders are timed to avoid both excess stock and stockouts): The economic production quantity model: The quantity discount model.